Solving Common Financial Management Challenges in the Construction Industry
Givens LLP | February 27, 2025
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Tax season in Canada is upon us. At Givens LLP, we understand the complexities of the Canadian tax system and the importance of accurate tax filing. We've observed common mistakes leading to Canadians overpaying or facing unnecessary CRA scrutiny, and this guide aims to equip you with the knowledge to navigate tax season with confidence.
The Cost of Tax Filing Errors
Even seemingly minor errors can have significant financial consequences, including penalties, interest charges, and potential audits from the Canada Revenue Agency (CRA). Understanding these common pitfalls is crucial:
1. The Perils of Procrastination: Missing the Filing Deadline
Delaying tax filing can lead to late penalties and accruing interest. The deadline for individual income tax returns is April 30th. Self-employed individuals (and their spouses or common-law partners) have until June 15th to file, but any taxes owing are still due on April 30th.
2. Leaving Money on the Table: Overlooking Deductions & Credits
Many Canadian taxpayers fail to claim available deductions and credits, resulting in overpayment of taxes. Common examples include:
- Medical Expenses: Maintain records of eligible medical expenses, including private health insurance premiums.
- Registered Retirement Savings Plan (RRSP) Contributions: Contributing to an RRSP can significantly reduce taxable income.
- Tuition Amounts: Tuition amounts may be claimable for individuals (or their children) attending designated educational institutions.
- Home Office Expenses: If employed and working from home, you may be eligible to claim home office expenses using the detailed method.
- First Home Savings Account (FHSA) contributions: A new tax-free way to save for your first home.
3. Leaving Money on the Table: Overlooking Deductions & Credits
Inadequate record-keeping can lead to inaccurate returns and potential audits. The CRA mandates the retention of supporting documentation for at least six years.
4. Navigating Business Taxes: Misclassifying Expenses
For business owners and freelancers, misclassifying expenses can lead to tax complications and potential penalties. Examples include incorrectly claiming personal expenses as business expenses.
5. Understanding Audit Triggers: Avoiding CRA Red Flags
Certain filing patterns, such as claiming excessive deductions, significant income fluctuations, or discrepancies compared to industry averages, can increase the likelihood of an audit.
Helpful Tax Resources to Keep You on Track
In addition to professional guidance from Givens LLP, here are some publicly available resources to help you stay informed and prepared:
Government of Canada – Tax Filing Information
Find official guidance on deadlines, tax credits, and deduction eligibility.
CRA Business Tax Hub
A must-visit for entrepreneurs, freelancers, and business owners navigating tax obligations.
Tax Calculator & Refund Estimator
Estimate your refund or tax bill before you file.
CRA My Account
Check your tax slips, review past filings, and track your refund online.
Free Tax Clinics (If Eligible)
If you have a simple tax situation and modest income, you may qualify for free tax help.
Note—while these tools are helpful, they can’t replace expert advice tailored to your unique situation.
The Givens LLP Advantage: Your Partner in Tax Success
Givens LLP offers more than just tax preparation; we proactively identify opportunities to optimize your return and protect you from costly errors. Partner with Givens LLP this tax season for accurate and strategic tax filing.
Don’t wait until the deadline—get ahead of tax season with Givens LLP!
Don’t let financial management challenges hold your business back. Contact Givens LLP and let us make your success our next project.
